Can Estate Agents/Vendor lie and get away with it?
Discussion
Situation was we went to view a house and then when went back for a 2nd viewing a few days later the agent said to us "The vendors have seen a house that they want to buy so to help get a buyer they're prepared to "chain break" by moving in with relatives so that the purchase of their new hosue isn't conditional on the sale of this"
The agent also gave us a new set of their brochure and 2nd line in it now says "Offerred for sale with no Upper Chain".
It was on that basis we made our initial offer (rejected) but one of their reasons was that it was sold with no chain and this was again confirmed in the Estate Agents confirmation letter.
So, everything was going along nicely, in the exchange between the Solicitors there was reference to the chain, which we queried but were told by our solicitor that the vendors solicitor had again confirmed that the vendors were going to chain break.
Anyway to cut a long story short, the chain fell apart on the day of exchange and the vendors lost the house they were going to buy.
SO, we said "well they're going to chain break, just because the chain has fallen apart aboive us why does that effect our purchase?"
The reply came back "they won't chain break".
So, we're now left out of pocket of all the fees etc etc etc
DO we have any recourse for our loss against either the Vendor who lied to everyone or the Estate Agent who misrepresented the property?
The agent also gave us a new set of their brochure and 2nd line in it now says "Offerred for sale with no Upper Chain".
It was on that basis we made our initial offer (rejected) but one of their reasons was that it was sold with no chain and this was again confirmed in the Estate Agents confirmation letter.
So, everything was going along nicely, in the exchange between the Solicitors there was reference to the chain, which we queried but were told by our solicitor that the vendors solicitor had again confirmed that the vendors were going to chain break.
Anyway to cut a long story short, the chain fell apart on the day of exchange and the vendors lost the house they were going to buy.
SO, we said "well they're going to chain break, just because the chain has fallen apart aboive us why does that effect our purchase?"
The reply came back "they won't chain break".
So, we're now left out of pocket of all the fees etc etc etc
DO we have any recourse for our loss against either the Vendor who lied to everyone or the Estate Agent who misrepresented the property?
Because you never actually 'exchanged' there's nothing you can do. You had no contract with them so anything they said they would or wouldn't do is unenforcable.
Comments such as 'Chain-free' usually only mean that the vendor will move out on or just after exchange, but not necessarily in order to exchange.
Comments such as 'Chain-free' usually only mean that the vendor will move out on or just after exchange, but not necessarily in order to exchange.
Edited by Dr_Gonzo on Wednesday 4th May 15:57
Marcellus said:
DO we have any recourse for our loss against either the Vendor who lied to everyone or the Estate Agent who misrepresented the property?
I suspect that the EA is nearly as pissed off as you are, as they are not going to receive a penny in commission. Remember the EA is only as good as the information they are given, and sadly there is nothing that can be done to prevent a
hole vendors moving the goalposts as and when they feel like it.anonymous said:
[redacted]
This pretty much sums it up. When large sums of money are involved it seems to bring the worst out in some.Cheers guys, didn't think I did but thought I'd check.
Just out of interest how come EU contract law (offer/acceptance/misrepresentation etc etc) doesn't apply to property sales/purchasing in England... after all if I were selling a product and said "it will do xyz" and it can't/doesn't then the purchaser would have recourse against me would they not?
(and yes rah1888 the agent is totally hacked off as they had 3 of the 4 houses in the chain!!)
Just out of interest how come EU contract law (offer/acceptance/misrepresentation etc etc) doesn't apply to property sales/purchasing in England... after all if I were selling a product and said "it will do xyz" and it can't/doesn't then the purchaser would have recourse against me would they not?
(and yes rah1888 the agent is totally hacked off as they had 3 of the 4 houses in the chain!!)
I suspect this thing is not uncommon.
When I bought last year the property was advertised as chain free. I made an offer in writing on the basis of being chain free, in which I clarified this meant completion to be at my sole discretion. So we come to exchange and the old fart selling, starts saying but I haven't got anywhere to live and for 3 days refuses to agree a completion date. I'd requested 2 weeks from exchange. He then starts going on about 6 -10 weeks so he can find somewhere else, which would have killed the chain below me. In the end I exchanged with the chain below me with completion in 3 weeks late on a Friday afternoon, with no exchange with the guy above. Sent him a strong email telling him he had until noon Monday to exchange based on completion in 3 weeks or I was going elsewhere. Finally exchanged with him at 11:50 on the Monday!
Talking with the agent after the old fart apparently then refused to pay the agents fees on the basis the agents had stitched him up over being chain free. Beggers belief.
When I bought last year the property was advertised as chain free. I made an offer in writing on the basis of being chain free, in which I clarified this meant completion to be at my sole discretion. So we come to exchange and the old fart selling, starts saying but I haven't got anywhere to live and for 3 days refuses to agree a completion date. I'd requested 2 weeks from exchange. He then starts going on about 6 -10 weeks so he can find somewhere else, which would have killed the chain below me. In the end I exchanged with the chain below me with completion in 3 weeks late on a Friday afternoon, with no exchange with the guy above. Sent him a strong email telling him he had until noon Monday to exchange based on completion in 3 weeks or I was going elsewhere. Finally exchanged with him at 11:50 on the Monday!
Talking with the agent after the old fart apparently then refused to pay the agents fees on the basis the agents had stitched him up over being chain free. Beggers belief.
Hmmm...if it's in writing that they would do this, and then they didn't, surely they are at least in breach of their agreement? Whether that's a basis on which a solicitor would pursue them, I don't know. We just went through a sale in the family where the buyer committed to a fast exchange and then dragged it out for months - our solicitor was useless.
If this is the end of the line with this house, then I would send them the bill. If they don't pay it then make a small claims court claim using moneyclaimonline. You might lose but decisions are a bit random and it doesn't cost much. Many people settle before the decision.
If this is the end of the line with this house, then I would send them the bill. If they don't pay it then make a small claims court claim using moneyclaimonline. You might lose but decisions are a bit random and it doesn't cost much. Many people settle before the decision.
Edited by Deva Link on Wednesday 4th May 20:19
Marcellus said:
Cheers guys, didn't think I did but thought I'd check.
Just out of interest how come EU contract law (offer/acceptance/misrepresentation etc etc) doesn't apply to property sales/purchasing in England... after all if I were selling a product and said "it will do xyz" and it can't/doesn't then the purchaser would have recourse against me would they not?
(and yes rah1888 the agent is totally hacked off as they had 3 of the 4 houses in the chain!!)
There is no contract law involved, it is the Law of Property Act 1925 which asserts that no transfer of land may be undertaken without being in writing. And that is the point of exchange. Up until the contracts have been exchanged there is no liability.Just out of interest how come EU contract law (offer/acceptance/misrepresentation etc etc) doesn't apply to property sales/purchasing in England... after all if I were selling a product and said "it will do xyz" and it can't/doesn't then the purchaser would have recourse against me would they not?
(and yes rah1888 the agent is totally hacked off as they had 3 of the 4 houses in the chain!!)
It's sad, but that is the law of England and Wales.
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